Texas Body Shop Workers Arrested In $800K Fraud

Nov. 21--Ten employees from four El Paso area body shops have been arrested on suspicion of insurance fraud after allegedly intentionally damaging vehicles to make false insurance claims, law enforcement officials said Friday.

El Paso Police Chief Greg Allen said the National Insurance Crime Bureau informed police about the alleged insurance fraud that led to a 22-month investigation and the arrest of the employees.

"With the efforts of all the agencies involved here along with the District Attorney's Office, we are bringing this particular investigation to a successful conclusion," Allen said during a news conference Friday morning at police headquarters, 911 N. Raynor St.

The El Paso Police Department's Auto Theft Task Force, the FBI, the Texas Department of Public Safety, Homeland Security Investigations and other agencies began Operation Paint Job, looking into body shops suspected of committing insurance fraud.

The task force discovered employees at some body shops were intentionally damaging vehicles to file insurance claims. Damages varied from vandalism to staged accidents, officials said.

The shops are still open at this time, officials said. About five insurance companies brought the alleged fraudulent cases to the attention of law enforcement, said Capt. Jaime Ramos of the DPS criminal investigations division.

Suspicious claims were brought to the attention of law enforcement officials in January 2014, officials said.

El Paso police spokesman Sgt. Robert Gomez said at a news conference at police headquarters in Central El Paso that in 2014, 217 suspected fraudulent cases emerged. The estimated cost of the suspected fraud claims ranged from approximately $800,000 to $1.3 million.

Gomez said that no customers were charged or involved in this specific operation.

"It's a very serious offence and it costs policyholders and (the) insurance industry a great deal of money," Gomez said.

Because insurance fraud is time consuming and difficult to investigate, Gomez said, El Paso police formed a task force involving multiple law enforcement agencies. The fraudulent cases were discovered after an undercover operation of eight El Paso body shops. Out of the eight body shops that were investigated, four of them were found to be "conducting illegal activity," Gomez said at the news conference.

The 10 employees who were arrested in a warrant roundup Thursday face charges ranging from insurance fraud to engaging in organized criminal activity.

Police officials said some of the scenarios involved employees increasing the damage to vehicles to increase the value for the insurance claims, as well as staging accidents.

Also, Gomez said, "Accidents that didn't occur were being claimed to insurance companies."

DPS Regional Commander Carey Matthews said the case has been handed over to the El Paso District Attorney's Office, adding that the DPS will provide additional assistance as needed.

District Attorney Jaime Esparza said he was pleased with the results of the warrant roundup.

"To me, this is a sign of a successful task force, a successful investigation and now they'll hand it to us and we'll take it to court," Esparza said.

The investigation resulted in warrants executed Thursday, resulting in the arrests, officials said. The task force is coordinating with the District Attorney's Office for prosecution, officials said.

The employees worked at Gordo's Body Shop, Rigo's Body Shop, Big V's Body Shop and C&M body Shop, authorities said.

The breakdown of the arrests:

Gordo's Body Shop:

* Matthew Nathaniel Olivas, 28: insurance fraud of $1,500 to $20,000, with a bond of $2,500

Rigo's Body Shop

* Juan Francisco Apodaca, 33: two counts of engaging in organized criminal activity/insurance fraud, with bonds totaling $40,000

* Rigoberto Martinez Leanos, 45: two counts of engaging in organized criminal activity/insurance fraud, with bonds totaling $45,000

* Cid Romero, 43: insurance fraud of $1,500 to $20,000, with a bond of $7,500

* Christian Rodriguez, 23: insurance fraud of $1,500 to $20,000, with a bond of $7,500

* Daniel Martinez Salas, 23: insurance fraud of $1,500 to $20,000, with a bond of $7,500

* Julio Mota, 24: insurance fraud of $1,500 to $20,000, with a bond of $7,500

Big V's Body Shop

* Christopher Adam Enriquez, 28: insurance fraud of $1,500 to $20,000, with a bond of $1,500

C&M Body Shop

* Miguel Angel Garcia, 50: insurance fraud of $1,500 to $20,000, with a bond of $2,500

* Michael Christopher Crowe, 27: insurance fraud, with a bond of $10,000

Luis Carlos Lopez may be reached at 546-6381; llopez@elpasotimes.com; @lclopez4 on Twitter.

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(c)2015 the El Paso Times (El Paso, Texas)

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